EN

EN EN
 EUROPEAN COMMISSION

Brussels, 7.7.2010
SEC(2010) 830 final

COMMISSION STAFF WORKING DOCUMENT

EU LEGISLATION, COVERAGE AND RELATED INITIATIVES

Accompanying document to the

GREEN PAPER

towards adequate, sustainable and safe European pension systems

{COM(2010) 365 final}

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 TABLE OF CONTENTS

1. Description of EU legislation covering the pension pillars ......................................... 3

1.1. Social Security Regulation........................................................................................... 3
1.2. The IORP Directive...................................................................................................... 4
1.3. The Insolvency Directive ............................................................................................. 4
1.4. The existing Directive on safeguarding supplementary pension rights of a person
moving within the EU and the draft proposal on portability of supplementary pension
rights............................................................................................................................. 4
1.5. The Life Assurance Directive ...................................................................................... 5
2. Related EU legislation and initiatives .......................................................................... 5
2.1. UCITS IV Directive ..................................................................................................... 5
2.2. Pre-contractual information disclosure ........................................................................ 6
2.3. Financial education ...................................................................................................... 6
2.4. Corporate Governance and remuneration policies....................................................... 7
2.5. Non-life Insurance Directive (health) .......................................................................... 7
2.6. Health policy ................................................................................................................ 7
2.7. The Gender Equality Directives................................................................................... 8
2.8. Taxation........................................................................................................................ 8
2.9. Statistics ....................................................................................................................... 9
2.10. EU-wide reviews.......................................................................................................... 9
3. CEIOPS mapping of EU prudential regulation.......................................................... 10
3.1. Statutory funded pension schemes/institutions .......................................................... 11
3.2. Occupational pension schemes/institutions................................................................ 11
3.3. Individual pension schemes/institutions .................................................................... 12

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 This document describes EU legislation covering the pension pillars (section 1) and related
EU legislation and initiatives (section 2). A mapping of the EU legislation applicable to
pension schemes/institutions in the different EU Member States is provided in section 3. This
mapping focuses in particular on prudential regulation and was carried out by the Committee
of European Insurance and Occupational Pensions Supervisors (CEIOPS).

1. DESCRIPTION OF EU LEGISLATION COVERING THE PENSION PILLARS

1.1. Social Security Regulation

EU law in the field of social security provides for the co-ordination but not the harmonisation
of social security schemes. This means that each Member State is free to determine the details
of its own social security system, including which benefits are to be provided, the conditions
of eligibility, how these benefits are calculated and what level of contributions should be paid.
EU law provisions, in particular Regulations No 883/20041 and No 987/20092 (replacing
Regulations No 1408/713 and No 574/724 since 1 May 2010), establish common rules and
principles which must be observed by all national authorities when applying national law.
These rules ensure that the application of the different national legislations respects the basic
principles of equality of treatment and non-discrimination and persons exercising their right to
free movement within the EU are not adversely affected by the application of different
national legislations.

With regard to pensions, the EU Coordination Regulations cover old-age pensions, survivors'
pensions and invalidity pensions. In general, only statutory schemes are coordinated. The EU
Coordination rules lay down for the following principles:

– Aggregation: periods of insurance or residence completed under the legislation of another

Member State are taken into account if necessary for entitlement to a benefit;

– Waiving of residence clauses: entitlement to a pension does not depend on residence in the
Member State granting the pension;

– Each Member State where a person was insured for at least one year pays a pension; there
is no 'transfer' of pension rights to the pension system of another Member State.

1
Regulation (EC) No 883/2004 of the European Parliament and of the Council of 29 April 2004 on the
coordination of social security systems (Text with relevance for the EEA and for Switzerland), OJ L
166, 30.4.2004, p. 1–123
2
Regulation (EC) No 987/2009 of the European Parliament and of the Council of 16 September 2009
laying down the procedure for implementing Regulation (EC) No 883/2004 on the coordination of
social security systems.
3
Regulation (EEC) No 1408/71 of the Council of 14 June 1971 on the application of social security
schemes to employed persons and their families moving within the Community
4
Council Regulation (EEC) No 574/72 of 21 March 1972 fixing the procedure for implementing
Regulation (EEC) No 1408/71 on the application of social security schemes to employed persons and
their families moving within the Community

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 1.2. The IORP Directive

A major milestone was reached in 2003 with the adoption of Directive 2003/41/EC5 on the
activities and supervision of institutions for occupational retirement provision (IORP
Directive). It enables pension funds to benefit from the Internal Market principles of free
movement of capital and freedom to provide services. The Directive allows pension funds to
manage occupational pension schemes for companies that are established in another Member
State and allows European-wide companies to have only one pension fund for all subsidiaries
in Europe. The Directive establishes prudential standards to ensure that members and
beneficiaries are properly protected, as well as requirements concerning the disclosure of
information. The Directive is, however, based on minimum harmonisation and mutual
recognition and it does not cover all forms of occupational pension provision.

1.3. The Insolvency Directive

Directive 2008/94/EC6 provides for the protection of employees’ rights in the event of the
insolvency of their employer, in particular in order to guarantee payment of their outstanding
claims. As far as supplementary occupational pensions are concerned, Article 8 requires
Member States to adopt the necessary measures to protect these pensions. The European
Court of Justice has ruled7 that the Directive places no obligation on the Member States
themselves to fund the rights to old-age benefits. Furthermore the Court took the view that the
Directive cannot be interpreted as demanding a full guarantee of the rights in question. The
Directive does no more than call, in general terms, for adoption of the measures necessary to
“protect the interests” of the persons concerned, while leaving the Member States
considerable latitude as regards the level of protection and ruling out any obligation to
provide a full guarantee. At the same time, the Court considered that a system which may, in
certain cases, lead to a guarantee of benefits of less than half of that entitlement, cannot be
deemed to fall within the definition of “protect” as applied in the Directive.

1.4. The existing Directive on safeguarding supplementary pension rights of a

person moving within the EU and the draft proposal on portability of
supplementary pension rights

Unlike with social security pensions which are aggregated under EU rules, people who have
supplementary pension rights may lose out when they change jobs within or between
countries. A first step to tackle this issue was Council Directive 98/49/EC8, which effectively
ensured that people moving across borders were treated no worse than those moving within a
Member State. The Directive does not cover, however, what is often called the "portability" of
supplementary pensions even though this may have a serious effect on worker mobility.

The Commission has recognised that insufficient portability of supplementary pension rights
can create important obstacles to workers' mobility, and therefore to the free movement of

5
Directive 2003/41/EC of the European Parliament and of the Council of 3 June 2003 on the activities
and supervision of institutions for occupational retirement provision, OJ L 235 , 23/09/2003 P. 0010 –
0021.
6
Directive 2008/94/EC of the European Parliament and of the Council of 22 October 2008 on the
protection of employees in the event of the insolvency of their employer OJ L 283, 28.10.2008, p. 36
7
Judgment of the Court of 25 January 2007 (Carol Marilyn Robins and others v Secretary of State for
Work and Pensions). C-278/05. ECR 2007 Page I-01053
8
Council Directive 98/49/EC of 29 June 1998 on safeguarding the supplementary pension rights of
employed and self-employed persons moving within the Community, OJ L 209, 25.7.1998, p. 46–49.

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 workers which is one of the basic rights enshrined in the Treaty. The Commission proposed a
new Directive in October 2005 to set minimum standards for the acquisition, preservation and
transferability of supplementary pension rights. These standards would apply to people
moving both within and between EU countries. Internal mobility was included because it was
impractical to separate internal and external mobility. In addition, labour mobility was key to
promoting economic dynamism and labour market adjustment, as set out in the Lisbon
Strategy.

The proposal was revised by the Commission in 2007 to omit the transferability element
which had been opposed by some as technically difficult and potentially burdensome or open
to abuse. As a result, the emphasis was laid on the timely acquisition of pension rights and
their subsequent preservation (indexation). However, it has still not been possible to reach the
unanimous agreement needed in Council. The proposal remains 'live'.

1.5. The Life Assurance Directive

The internal market in the field of life assurance, allowing insurance undertakings to operate
throughout the EU and to establish and provide services freely, was initiated in 1979 with the
adoption of the First Life Directive.9 The subsequent improvements to the legal framework
were recast in 2002 into a single text (Directive 2002/83/EC10). The prudential rules
applicable to life assurance undertakings were substantially overhauled in 2009 with the
adoption of the Solvency II Directive (Directive 2009/138/EC11). The harmonisation of
insurance regulation will give a new impetus to the internal market for life assurance products
through greater economic efficiency and stronger protection of policy holders. It was,
however, not the objective of the Solvency II Directive to modernise the policyholder
information requirements, which continue to differ significantly across Member States.

2. RELATED EU LEGISLATION AND INITIATIVES

2.1. UCITS IV Directive

The UCITS Directive12 contains the regulatory framework for retail funds at the European
level and lays the basis for a single market in these funds. UCITS IV changes were adopted in
2009 to address a number of efficiency concerns, investor protection issues, and practical
problems that have been identified in relation to the UCITS industry, the combination of
which was considered to be limiting the development of the UCITS market.

More specifically, changes were made, for example, in the areas of governance and risk
management. The UCITS IV Directive contains changes that enhance the effectiveness of the
management company passport, in particular by providing for safeguards that foster

9
First Council Directive 79/267/EEC of 5 March 1979 on the coordination of laws, regulations and
administrative provisions relating to the taking up and pursuit of the business of direct life assurance,
OJ L 63, 13.3.1979, p. 1–18.
10
Directive 2002/83/EC of the European Parliament and of the Council of 5 November 2002 concerning
life assurance, OJ L 345, 19.12.2002, p. 1–51.
11
Directive 2009/138/EC of the European Parliament and of the Council of 25 November 2009 on the
taking-up and pursuit of the business of Insurance and Reinsurance (Solvency II) (Text with EEA
relevance), OJ L 335, 17.12.2009, p. 1–155.
12
Directive 2009/65/EC of the European Parliament and of the Council of 13 July 2009 on the coordination of laws,
regulations and administrative provisions relating to undertakings for collective investment in transferable securities
(UCITS), OJ L 302, 17.11.2009, p. 32–96.

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 supervisory cooperation and mutual confidence. To ensure this confidence, the Commission is
due to adopt Level 2 implementing measures by the end of June 2010 that will harmonise
certain attributes of management companies business (in particular organisational
arrangements including rules of conduct, conflicts of interest but also risk management and
measurement). As a result, once the management company is approved in one Member State
it will be subject to a harmonised set of standards across the EU.

2.2. Pre-contractual information disclosure

There are several examples of testing of pre-contractual information for financial services,
both at EU and national level. At the EU level, the Commission asked OPTEM and its
partners in the 27 Member States to carry out a qualitative study among consumers on the
subject of pre-contractual information for diverse types of financial products, including
consumer credit, mortgage loans and investment services. A summary report was made
available in January 2008.13

The UCITS IV Directive requires UCITS to provide a Key Investor Information (KII) sheet in
a harmonised and standardised form to the investor. On the basis of a consumer testing that
fed into advice from the Committee of European Securities Regulators (CESR), the
Commission will adopt Level 2 implementing measures by the end of June 2010. The results
of the testing underlined the difficulty faced by retail investors in effectively engaging with
and using information about investment products. It showed that key information on risks,
costs and performance was calculated and presented inconsistently or in such a way that it
was difficult to use, and detailed content or presentation of information was not standardised.
The Level 2 implementing measures are to ensure that the communication and presentation of
Key Investor Information to individuals is visual, simple, and facilitates comparisons across
funds.

The Commission announced in its Communication of 30 April 2009 on Packaged Retail

Investment Products (PRIPs)14 its commitment to introduce a new horizontal approach to the
regulation of sales and pre-contractual disclosures for these products, so as to ensure a level
playing field between different types of investment products offered in the retail market. The
aim is to ensure that consumer protection measures are effective and appropriate. Following
the Communication, the Commission will focus on developing specific legislative proposals
for this new horizontal approach, possibly in Spring 2011. The PRIPs proposals will be
subject to their own impact assessment, which will consider their incremental impact for all
stakeholders.

2.3. Financial education

The best way to increase the financial capability of consumers in the Internal Market is by
developing coordinated strategies in individual Member States. The role of the Commission is
to encourage the Member States to tackle financial education issues and to facilitate an
exchange of best practices. The Commission has taken initiatives to organise expert meetings,
maintain a European database, develop on-line tools for teachers and support events through
patronage.

13
Pre-contractual information for financial services, January 2008, available at
http://ec.europa.eu/consumers/rights/docs/PCI_final_report_22Feb2008_en.pdf
14
Communication from the Commission on Packaged Retail Investment Products, 30.4.2009,
COM(2009) 204 final

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 2.4. Corporate Governance and remuneration policies

Following an announcement in the Commission Communication "Driving European

Recovery" of March 2009, the Commission adopted a Green Paper on 2 June 201015 in order
to launch a consultation process on possible (legislative and non-legislative) EU measures in
the area of Corporate Governance in financial institutions. The Green Paper addresses, among
others, the role of boards, shareholders, supervisors and external auditors in ensuring good
corporate governance, governance of the risk management process and remuneration policies.

The Green Paper states that corporate governance should take account of the interests of other
stakeholders (depositors, savers, life insurance policy holders, etc), as well as the stability of
the financial system, due to the systemic nature of many players. A fortiori, these
considerations are relevant for pension funds, considering their economic importance and
their growing role in the society.

Furthermore, the Commission intends to consult, in a second stage, on possible measures in

Corporate Governance for all listed companies early in 2011.

2.5. Non-life Insurance Directive (health)

The First Non-life Insurance Directive (Directive 73/239/EEC16) specifies that health
insurance constitutes insurance business. Accordingly, supplementary private health insurance
(insurance which provides for health cover which is already covered by the statutory social
security system), complementary private health insurance (insurance which provides for
additional health cover which is outside the scope of the statutory social security) and
substitutive health insurance (insurance serving as a partial or total alternative to health cover
provided by the statutory social security system) are subject to the Non-life Insurance
Directives. The first Non-life Insurance Directive excludes from the scope of the application
of the non-life insurance directives "insurance forming part of a statutory system of social
security." The same applies to long-term care insurance.

2.6. Health policy

The state of people's health makes a significant difference between being able to work or not
and therefore impacts on retirement age and expenditure on pensions. National healthcare
reforms aimed at helping citizens to age in good health as well as EU action to promote
healthy ageing (as foreseen in the EU Health Strategy White Paper) can therefore contribute
to achieving the Europe 2020 objectives of retaining citizens longer on the labour market.

A population ageing in bad health means a smaller workforce with many people unable to
work because of health problems, lower retirement age and therefore greater spending on
pensions. A population ageing in good health can continue working as it grows older thus

15
Green Paper on Corporate governance in financial institutions and remuneration policies, COM(2010)
284, available at:
http://ec.europa.eu/internal_market/company/modern/corporate_governance_in_financial_institutions_e
n.htm
16
First Council Directive 73/239/EEC of 24 July 1973 on the coordination of laws, regulations and
administrative provisions relating to the taking-up and pursuit of the business of direct insurance other
than life assurance, OJ L 228 , 16/08/1973 P. 0003 – 0019.

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 contributing to rising retirement age and lowering spending on pensions. Citizens in good
health retire about two years later than workers in poor health.17

2.7. The Gender Equality Directives

Three Gender Equality Directives have an impact on pension schemes.

Directive 79/7/EEC18 implements the principle of equal treatment between men and women in
matters of social security and notably covers statutory pensions. It however contains a number
of exceptions to the principle of equal treatment. Member States are, for example, allowed to
maintain different retirement ages for men and women. At the same time, even if there is no
obligation flowing from EU gender equality law to equalise pensionable ages for men and
women in the field of social security, gender equalisation is often a first step in reforms aimed
at increasing the retirement age in general to preserve the adequacy and sustainability of
pensions.

Directive 2006/54/EC19 on employment and occupation covers occupational pension schemes.

In accordance with the case law of the European Court of Justice, this framework also applies
to pension schemes for a particular category of worker such as that of public servants if the
benefits are paid by reason of the employment relationship with the public employer. In this
case, these benefits are considered as pay.

Finally, Directive 2004/113/EC20 prohibits discrimination between women and men in the
access to and supply of goods and services and therefore covers private/individual pension
products. It contains an exception enabling Member States to permit proportionate differences
in individuals' premiums and benefits where the use of sex is a determining factor in the
assessment of risk based on relevant and accurate actuarial and statistical data (Article 5 (2)).

2.8. Taxation

In parallel to its proposal of the IORP Directive, the Commission presented a Pension
Taxation Communication21 in April 2001. At the time, many Member States did not grant tax
relief for the payment of pension contributions to foreign pension funds, whereas they did so
for payments to domestic funds. This would hinder the functioning of the proposed IORP
Directive. The Pension Taxation Communication concluded that the Member States cannot
discriminate against pension contributions paid to foreign IORPs. After attempts to find
common solutions with the Member States in Council discussions, the Commission launched
infringement procedures where necessary. Most Member States adapted their legislation. In
two cases the Court of Justice of the EU ruled that if domestic pension contributions were tax

17
Survey of Health, Ageing and Retirement in Europe, Mannheim Research Institute for the Economics
of Aging (MEA), 2008
18
Council Directive 79/7/EEC of 19 December 1978 on the progressive implementation of the principle
of equal treatment for men and women in matters of social security (OJ L 6, 10.01.1979).
19
Directive 2006/54/EC of the European Parliament and of the Council of 5 July 2006 on the
implementation of the principle of equal opportunities and equal treatment of men and women in
matters of employment and occupation (recast - OJ L 204 of 26.07.2006). It notably repeals Directive
86/378/EC (amended by Directive 96/97/EC) on occupational social security schemes (OJ L 225,
12.08.1986).
20
Council Directive 2004/113/EC of 13 December 2004 implementing the principle of equal treatment
between men and women in the access to and supply of goods and services (OJ L 373 of 21.12.2004).
21
The elimination of tax obstacles to the cross-border provision of occupational pensions, COM (2001)
214 final.

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 deductible, contributions paid to IORPs elsewhere in the EEA should also be tax deductible22.
Concrete result of the Commission's work in the area is that mobile workers can now remain
in their home country pension scheme if they take up a job in another Member State and
contributions to IORPs in other Member States can now be paid without tax discrimination.

The Pension Taxation Communication also concluded that discriminatory tax rules can be an
obstacle to the mobility of pensions. In Commission vs. Belgium23, the Court of Justice of the
EU ruled that it is contrary to EU law to tax transfers of pension capital from domestic
pension funds to funds established elsewhere in the EEA if transfers of pension capital
between domestic pension funds are tax free. The Commission intends to examine whether
there are any other Member States with similar rules.

In April 2003 the Commission published a Dividend Taxation Communication24. On the basis
of the case law of the Court of Justice of the EU this Communication concluded that
dividends which leave a Member State (outbound dividends) cannot be taxed higher than
dividends which stay in the country (domestic dividends). Further to the Communication the
Commission opened a large number of infringement cases against those Member States that
discriminated against foreign IORPs. Some Member States have already changed their law
and eliminated the discriminations; a few others have been referred to the Court of Justice of
the EU.

2.9. Statistics

Several EU bodies are involved in the statistical work for pensions. The purpose of the
Indicator Sub-Group (ISG) of the Social Protection Committee (SPC) is to collect data on
coverage and contribution rates. Eurostat collects data on social protection benefits
(ESSPROS), disposable income (EU-SILC) and pension funds (Structural Business
Statistics). The European Central Bank (ECB) collects statistics on the volumes (stocks and
flows) of the assets and liabilities of pension funds and insurance corporations. The future
European Systemic Risk Board (ESRB) is likely to step up its data requirements for financial
stability purposes. The European Commission also participates in international work and has
engaged in a joint project with the OECD to collect statistics on the adequacy of benefits from
private pension provision.

In the future, retired people will receive their pensions from at least two, if not more, sources
(and pillars). Thus, the current statistical frameworks - even if improved - will not be able to
provide comprehensive and reliable information on regular pension-type revenues. It is
essential, therefore, to define precisely what sorts of regular receipts can be considered as a
pension, how different revenue streams may be added, and how risks related to some
resources are to be measured.

2.10. EU-wide reviews

A study carried out for the European Commission in 200725 provided an insight into the range
of products in which retail clients invest when they save for the long term: namely term bank

22
Commission vs. Belgium, Case C-522/04, Commission vs. Denmark, Case C-150/04.
23
Case C-522/04.
24
Dividend taxation of individuals in the Internal Market, COM(2003) 810 final.
25
"The EU Market for Consumer Long-Term Retail Savings Vehicles" (BME Consulting, 15 November
2007); available at http://ec.europa.eu/internal_market/finances/docs/cross-sector/study_en.pdf

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 deposits, securities, investment funds, life assurance contracts and funded pension schemes. It
illustrated the degree of integration in this market in the EU. The study also provided a
snapshot of the drivers of consumer behaviour, in terms of both reasons for saving and choice
of vehicle.

A more recent study carried out for European Commission in 200926 indicated that 13
Member States have some form of Equity Release Scheme (Austria, Bulgaria, Finland,
France, Germany, Hungary, Ireland, Italy, Netherlands, Romania, Spain, Sweden, UK). The
most significant markets are the UK, Ireland and Spain. ERS account for less than 0.1% of the
EU mortgage market. The market for Loan model schemes is larger than that for Sale model
schemes: the estimated volume of Loan model schemes is EUR 3.3 billion (50 000 contracts),
whereas that for Sale model schemes is EUR 1.4 billion (with just under 20 000 contracts).

3. CEIOPS MAPPING OF EU PRUDENTIAL REGULATION

The statutory pay-as-you-go (PAYG) pension, an unfunded defined-benefit scheme, is the

basis for the overall pension income for most EU citizens. A number of Member States have
supplemented the statutory pension scheme with a funded tier in the form of a defined-
contribution scheme, which is administered in many cases by a private financial institution.
Other Member States have, instead of or in addition to these schemes, set up unallocated
demographic reserve funds to support statutory PAYG pensions.

In many Member States the statutory pension is supplemented by occupational pensions and
individual pensions. In some instances occupational pensions are offered on a PAYG basis or
through book reserves on the employer's balance sheet, although the bulk is provided through
funded schemes operated by pension funds or insurance undertakings (e.g. group insurance
contracts). Individual pensions are arranged by contract directly with a product provider -
generally a life assurance company or a pension fund. An individual’s contributions are
accumulated and invested, and the resulting fund is subsequently used to provide pension
benefits for the individual.

Participation in occupational and individual schemes may be mandatory or voluntary,

although increasingly Member States are allowing the possibility of opting-out from
mandatory pension schemes.

Mirroring the disparate developments in Member States, the distinction between the various
pension pillars has also become less straight-forward in recent years. At the request of the
Commission, CEIOPS has carried out a detailed mapping exercise in 2009 to clarify the EU
prudential regulation that applies to the different pension schemes/institutions. The EU
Directives considered were Directives 2003/41/EC (IORP), 2002/83/EC (Life) and
85/611/EEC (UCITS). Some Member States also referred to Directives 2006/48/EC
(Banking) and Directive 93/22/EEC (Investment Services), repealed by Directive 2004/39/EC
(MiFID). The remainder of this section summarises the main results of the mapping. The
more detailed information is provided in Table 1.

26
"Study on Equity Release Schemes in the EU" (Institut für Finanzdienstleistungen, January 2009);
available at:
http://ec.europa.eu/internal_market/finservices-retail/docs/credit/equity_release_part1_en.pdf

EN 10 EN
 Moreover, on the basis of this mapping, the Commission, with the collaboration of CEIOPS,
is conducting a further exercise aiming to review data on private pension products.
Preliminary results of this exercise indicate that occupational products reach a total of roughly
€3.6 trillion, of which €2.6 trillion in IORPs, €0.5 trillion in insurance products and €0.5
trillion in other investment vehicles. Personal pension products account for around €1.7
trillion, of which €0.7 trillion in insurance products, € 0.9 trillion in other investment vehicles
and a further €58 billion in IORPs.

3.1. Statutory funded pension schemes/institutions

Statutory funded pension schemes/institutions, whether mandatory or not, are covered by EU

Regulations 883/2004 and 987/2009 (replacing Regulations 1408/71 and 574/72 since 1 May
2010). According to the mapping, they exist predominantly in the Member States that joined
the EU in the period 2004-2007. Employers can pay contributions into the schemes in the case
of EE.

There are no EU prudential rules for the pension funds that are part of statutory funded
pension schemes/institutions. Most of the Member States concerned therefore do not apply
EU prudential regulation. Some Member States have, however, applied the Life or UCITS
Directive to these pension funds. The mapping has highlighted the following situation:

– IORP Directive: n/a

– Life Directive: EE

– UCITS Directive: EE

– Banking Directive: n/a

– Investment Services (MiFID): n/a

– No EU prudential rules: BG, LV, LT, HU, PL, RO, SK

3.2. Occupational pension schemes/institutions

The IORP Directive covers many occupational pension schemes/institutions, but not all. The
Directive has been implemented by almost all the Member States, with only a few exceptions.
Article 4 of the IORP Directive, allowing many of the rules in the IORP Directive to apply to
the occupational retirement provision business of life assurance undertakings, is used in three
Member States. The IORP Directive explicitly excludes book reserve and PAYG schemes
from its scope. In many Member States there are also occupational pension schemes that are
subject to the Life or UCITS Directives. The mapping has highlighted the following situation:

– IORP Directive: - Implemented with a few exceptions.

- Article 4: FR, LT, SE

– Life Directive: BE, DK, DE, EL, LU, NL, AT, PL, PT

– UCITS Directive: PL

– Banking Directive: n/a

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 – Investment Services (MiFID): n/a

– No EU prudential rules: - book reserves: BE, DE, IT, CY, LU, AT, PT, SE

- PAYG: CY

3.3. Individual pension schemes/institutions

Individual pension schemes/institutions are covered by a broad range of directives: Life,

UCITS, banking and investment services (MiFID). The IORP Directive is also used by some
Member States that have chosen to apply the IORP Directive to individual pension schemes in
the national transposition (e.g. RO).

There are, however, also a number of individual pension schemes/institutions that are not
covered by any EU prudential regulation. These are voluntary supplementary pensions in the
form of individual DC schemes in seven Member States (BG, CZ, ES, HU, MT, PT, SI). In
some of these Member States, the employers can act as a third person to contribute to personal
accounts (BG, CZ), while in another it is common practice for employers to pay contributions
on behalf of the member (HU). By contrast, in some Member States (ES, MT), employers are
not allowed to contribute to personal accounts.

The mapping has produced the following situation:

– IORP Directive: IT, LV, RO

– Life Directive: BE, DK, DE, EE, IE, ES, FR, IT, CY, LT, LU, HU, NL

AT, PL, PT, SE, UK

– UCITS Directive: BE, DE, EE, LT, LU, HU, PL, PT

– Banking Directive: DE, LU, HU, PL

– Investment Services (MiFID): PL

– No EU prudential rules: BG, CZ, ES, HU, MT, PT, SI

EN 12 EN
 Table 1 – EU regulation applicable to pension institutions/schemes

Important note: This table was prepared by CEIOPS and the information reflects the situation
prevailing in May 2010. It has however been the decision of each member of CEIOPS as to
what kind of institution, scheme or product is included in the table. The national information
is therefore not necessarily comprehensive. Important country-specific notes are contained at
the end of this table.

Types of the private pension institutions Types of Mandator Source EU

pension y/ regulation
schemes voluntary • Statutory
Domestic Legal form Legal form Art. /
funded
name (domestic) (English) 3? • occupational
voluntary
Y/N • individual
opt-out

BE IRP until DB, DC or Voluntary Occupational IORP

(Institutions 01/01/2012: mixed (b) (c)
de Retraite non-profit
Professionnell ASBL/VZW organisation
e)/
or or
IBP (Instelling
voor
AAM/OVV mutual
Bedrijfspensio
insurance
envoorziening
association
)

As from
01/01/2007:
Organisation
OFP for Financing
Pensions

entreprise société par limited same as voluntary Occupational Life

d’assurance/ actions/ partnership above or individual
verzekeringso vennootschap with a share through
nderneming op aandelen capital group
insurance
or
+
société cooperative individual
coopérative/ partnership life
insurance
coöperatieve
vennootschap

or

AAM
(Association mutual
d’Assurances insurance
Mutuelles)/ association

OVV
(Onderlinge
Verenigingsve
reniging)

fonds OPCVM/ICBE: UCITS: individual voluntary individual UCITS

d'épargne- SICAV/BEVEK open-end pensions
pension / investment savings
pensioenspaar (d) company
fonds

EN 13 EN
 Types of the private pension institutions Types of Mandator Source EU
pension y/ regulation
schemes voluntary • Statutory
Domestic Legal form Legal form Art. /
funded
name (domestic) (English) 3? • occupational
voluntary
Y/N • individual
opt-out

Book reserves DB/DC voluntary occupational Excluded

(e) from IORP
Directive
based on
Art. 2.2.(e)

BG Пенсионно- Акционерно Joint Stock No DC Voluntary Occupational IORP

осигурително дружество Company (a) (b)
дружество

Пенсионно- Акционерно Joint Stock No DC Voluntary Individual (c) No EU

осигурително дружество Company (a) prudential
дружество legislation

Пенсионно- Акционерно Joint Stock No DC mandatory Statutory Regulation

осигурително дружество Company funded 1408/71
дружество (individual) and 574/72
(d)

CZ penzijní fond akciová joint-stock No DC voluntary Individual, No EU

společnost company although prudential
occupational regulation.
elements
possible (a)

DK Firmapensions Pensionskasse Company No DC or DB Mandatory occupational IORP

kasse Pension
Fund

Livsforsikrings Aktieselskab Life No DC or Voluntary/ Occupational/ Life

selskab Insurance unit- Mandatory individual
Company linked (a)

Tværgående Pensionskasse General No DC or Mandatory Life

pensionskasse Pension unit-
Funds linked

DE Pensionskasse Aktiengesellsc Joint-stock No Voluntary occupational IORP

haft company (a)

Versicherungs Mutual
verein auf insurance
Gegenseitigkei association
t
Corporationu
Körperschaft nder public
des law
öffentlichen
Rechts

Anstalt des Institution

öffentlichen under public
Rechts law

EN 14 EN
 Types of the private pension institutions Types of Mandator Source EU
pension y/ regulation
schemes voluntary • Statutory
Domestic Legal form Legal form Art. /
funded
name (domestic) (English) 3? • occupational
voluntary
Y/N • individual
opt-out

Pensionsfonds Aktiengesellsc Joint-stock No Voluntary Occupational IORP

(b) haft company (a)

Pensionsfonds Mutual
verein auf pension fund
Gegenseitigkei association
t

Direktzusage No Voluntary Occupational Excluded

(book-reserve (c) from IORP
schemes) (b) Directive
based on
Art.2.2(e)

Unterstützung Gesellschaft Limited No Voluntary Occupational Excluded

skasse (b) mit liability (c) from IORP
beschränkter company Directive
Haftung based on
Registered Recital 16
Eingetragener association and Art.
Verein 2.2(d)
Foundation
Stiftung

Lebensversich Aktiengesellsc Joint-stock No Voluntary Occupational Life

erungs- haft company (a)
unternehmen
(Direktversich Versicherungs Mutual
erung – direct verein auf insurance
insurance) (d) Gegenseitigkei association
t
Corporation
Körperschaft under public
des law
Öffentlichen
Rechts

Anstalt des Institution

öffentlichen under public
Rechts law

Altersvorsorge No Personal Voluntary Individual Life,

vertrag pension Banking,
(contract) schemes UCITS

Basisrentenve No Personal Voluntary Individual Life,

rtrag pension Banking,
(contract) schemes UCITS

EE Vabatahtlik Lepinguline Contactual No DC Voluntary Individual UCITS+extr

pensionifond fond fund a
requirement
s

EN 15 EN
 Types of the private pension institutions Types of Mandator Source EU
pension y/ regulation
schemes voluntary • Statutory
Domestic Legal form Legal form Art. /
funded
name (domestic) (English) 3? • occupational
voluntary
Y/N • individual
opt-out

Kohustuslik Lepinguline Contactual No DC Mandatory Statutory UCITS+extr

pensionifond fond fund funded a
(individual) requirement
s

Elukindlustuss Aktsiaselts Joint Stock No DB or DC Voluntary Individual Life

elts Company (Unit-
linked)

Elukindlustuss Аktsiaselts Joint Stock No DB Mandatory Statutory Life

elts Company funded
(individual)

IE Occupational Trust Trust No DB/DC/H Voluntary Occupational IORP

Pension ybrid
Scheme (a) schemes
and Trust
Retireme
nt
Annuity
Contracts

Personal Contract Contract No Individual Voluntary Individual Life

pension Retireme
nt
Annuity
Contracts
/Personal
Pensions

Personal Contract Contract No Individual Voluntary Individual Life

Retirement retiremen
Savings t savings
Accounts accounts

EL ΤΑΜΕΙΑ Νοµικά Non-profit No Occupatio Voluntary Occupational IORP (b)

ΕΠΑΓΓΕΛΜΑΤΙ πρόσωπα private nal
ΚΗΣ ιδιωτικού entities with Insurance
ΑΣΦΑΛΙΣΗΣ δικαίου legal Funds
(Τ.Ε.Α.) (ν.π.ι.δ.) µη personality. (DC) (a)
κερδοσκοπικο
ύ χαρακτήρα.

ΑΣΦΑΛΙΣΤΙΚΕ Group Life (d)

Σ Insurance
ΕΠΙΧΕΙΡΗΣΕΙΣ Contracts
(c)

ES Fondo de Fondo de IORP No DC, DB, Voluntary occupational IORP

Pensiones de Pensiones de or mixed
empleo empleo

Fondo de Fondo de Personal No Individual Voluntary Individual (a) No relevant

Pensiones Pensiones Pension and prudential
personal personal Fund associate EU
d pension legislation
scheme applicable
(b)

EN 16 EN
 Types of the private pension institutions Types of Mandator Source EU
pension y/ regulation
schemes voluntary • Statutory
Domestic Legal form Legal form Art. /
funded
name (domestic) (English) 3? • occupational
voluntary
Y/N • individual
opt-out

Seguros Collective Life Collective No DB Voluntary occupational Life (in

colectivos Insurance Life general)
Insurance
Contract

PPSE Collective Life Collective No DB Voluntary occupational Life (in

(Employer Insurance Life general)
Social Insurance
Prevision Contract
Plan)

PPA (Prevision Individual Life Individual No DB Voluntary Individual Life (in

Plan Assured) Insurance Life general)
Insurance
Contract

FR assureur vie Société Stock DC/DB Occupational IORP (Art.

anonyme company or individual 4) or Life
(a) (b)
Or Or

Société Mutual
d’assurance insurance
mutuelle company

Institution de Institution de Paritarian DC/DB Occupational IORP (Art.

prévoyance prévoyance institution or individual 4) or Life
ruled by the (a) (b)
“social
protection
code”

« mutuelle » Mutuelle du Mutual DC/DB Occupational IORP (Art.

code de la company or individual 4) or Life
mutualité ruled by a (a) (b)
specific code

Voluntary Occupational IORP

IT Fondi Associazione/f Association/f No DC opting-
pensione ondazione oundation out
negoziali (a)

Fondi Voluntary occupational/

pensione Patrimonio di An No DC opting- Individual IORP
aperti (b) destinazione autonomous out/Volunt
autonomo pool of ary
istituito da assets
una società instituted by
finanziaria in a financial
modo company
separato separately
rispetto al from its own
patrimonio assets
della stessa

EN 17 EN
 Types of the private pension institutions Types of Mandator Source EU
pension y/ regulation
schemes voluntary • Statutory
Domestic Legal form Legal form Art. /
funded
name (domestic) (English) 3? • occupational
voluntary
Y/N • individual
opt-out

Voluntary occupational
Fondi Associazione/f Association/f No DC, DB opting- IORP
pensione ondazione oundation closed to out
preesistenti new
autonomi (c) members

Fondi Voluntary occupational

Fondi pensione Book reserve No DC, DB opting-out Excluded
pensione interni ai closed to from IORP
preesistenti bilanci delle new Directive
(non società members based on
autonomi) (d) promotrici Art. 2.2(e)

(d)

Associazione/f Association/ Mandatory Statutory

Enti privati di ondazione Foundation Yes DB/DC funded Regulation
previdenza 1408/71
obbligatoria
dei liberi
professionisti
(e)

Patrimonio di
Piani destinazione An No Voluntary Individual Life
pensionistici autonomo autonomous
individuali istituito da pool of
(Pip) (f) una assets
compagnia di instituted by
assicurazione an insurance
in modo company
separato separately
rispetto al from its own
patrimonio assets
della stessa

CY Ταµεία Νοµικά Provident No DC/DB Mandatory Occupational IORP

Προνοίας Πρόσωπα Funds - set up via or (a)
Ιδιωτικού Private collective Voluntary
∆ικαίου Entities with agreemen (determin
Legal ts ed by the
Personality rules of
each
provident
fund)

Ταµεία Νοµικά Pension No DB set up Mandatory Occupational IORP

Συντάξεως Πρόσωπα Funds – via (b)
Ιδιωτικού Private collective
∆ικαίου Entities with agreemen
Legal ts
Personality

Επενδυτικά Ασφαλιστικό Insurance No Unit Voluntary Individual Life

Ατοµικά Συµβόλαιο Contract Linked Opt Out
Σχέδια Ζωής Personal
Life
Contracts

Σχέδια Pay as you No DB Mandatory occupational Excluded

Συντάξεως (c) go pension from the
schemes IORP
Directive

EN 18 EN
 Types of the private pension institutions Types of Mandator Source EU
pension y/ regulation
schemes voluntary • Statutory
Domestic Legal form Legal form Art. /
funded
name (domestic) (English) 3? • occupational
voluntary
Y/N • individual
opt-out

Σχέδιο Book reserve No DB Mandatory occupational Excluded

Φιλοδωρήµατο from the
ς (d) IORP
Directive

LV Privātais Akciju Stock No DC/DB voluntary Occupational IORP (b)

pensiju fonds sabiedrība company and
individual (a)

Regulation
N/A State funded DC Mandatory Statutory 1408/71
pension , voluntary funded
scheme (c)

LT Pensijų Asociacija Association DC, DB Voluntary Occupational IORP

asociacija (a)

Gyvybės Akcinė Public Life Voluntary Occupational IORP (Art.

draudimo bendrovė/ limited assurance 4)
įmonė, Uždaroji liability contract
vykdanti akcinė company/Pri under
profesinių bendrovė/Eur vate limited which
pensijų opos liability occupatio
kaupimo Bendrovė company/Eu nal
veiklą ropean pensions
company are
(Societas accumula
Europaea) ted

Valdymo Akcinė Public No DC Voluntary Statutory Excluded

įmonė bendrovė/Užd limited funded from IORP
aroji akcinė liability Directive
bendrovė company/Pri based on
vate limited Art. 2.2(a)
liability
company/

Gyvybės Akcinė Public No DC Voluntary Statutory Excluded

draudimo bendrovė/ limited funded from IORP
įmonė Uždaroji liability Directive
akcinė company/Pri based on
bendrovė/Eur vate limited Art. 2.2(a)
opos liability
Bendrovė company/Eu
ropean
company
(Societas
Europaea)

Valdymo Akcinė Public DC Voluntary individual UCITS (b)

įmonė bendrovė/Užd limited
aroji akcinė liability
bendrovė company/Pri
vate limited
liability
company/

EN 19 EN
 Types of the private pension institutions Types of Mandator Source EU
pension y/ regulation
schemes voluntary • Statutory
Domestic Legal form Legal form Art. /
funded
name (domestic) (English) 3? • occupational
voluntary
Y/N • individual
opt-out

Gyvybės Akcinė Public Life Voluntary individual Life

draudimo bendrovė/ limited assurance
įmonė Uždaroji liability contract
akcinė company/Pri
bendrovė/Eur vate limited
opos liability
Bendrovė company/Eu
ropean
company
(Societas
Europaea)

LU Fonds de Sepcav and Pension No voluntary Occupational IORP

pension assep savings
(CSSF) (a) companies
with variable
capital and
pension
savings
associations

Fonds de Association Mutual No voluntary Occupational IORP

pension (CAA) d’assurances insurance
(b) mutuelles, associations,
société co-operative
coopérative, companies,
société co-operative
coopérative companies
organisée organized as
comme une a public
société limited
anonyme ou company,
association charitable
sans but associations
lucratif

Assurances de Enterprise Insurance No voluntary Occupational Life

groupe d’assurances / company/
Contrats Group
d’assurance insurance
groupe contracts

Régime NA NA No voluntary Occupational No relevant

interne de Provisions au Book- prudential
pension bilan reserve EU
schemes legislation
applicable

EN 20 EN
 Types of the private pension institutions Types of Mandator Source EU
pension y/ regulation
schemes voluntary • Statutory
Domestic Legal form Legal form Art. /
funded
name (domestic) (English) 3? • occupational
voluntary
Y/N • individual
opt-out

Contrat de Produits de Pension No voluntary Individual Life,

prévoyance- prévoyance- products Banking,
vieillesse vieillesse represented UCITS (c)
représentés by insurance
par des products as
produits well as by
d’assurance banking
ainsi que par products
des produits invested in
bancaires licensed
investis dans units for
des collective
organismes de investment
placement
collectif
agréés

HU magánnyugdíj magánnyugdíj Association- No DC (a) mandatory Statutory Regulation

pénztár pénztár like special funded 1408/71
legal form (individual)

önkéntes önkéntes Association- No DC voluntary Individual (b) No relevant

nyugdíjpénztá nyugdíjpénztá like special prudential
r r legal form EU
legislation
applicable

Nyugdíjbiztosí - életbiztosító - joint-stock No Pension voluntary Individual Life

tás (Life rt. company insurance
Insurance
company) - biztosító - association
egyesület

foglalkoztatói Foglalkoztatói Joint stock No DB/DC voluntary Occupational IORP

nyugdíjszolgál nyugdíjszolgál company
tatás tató rt.

nyugdíjelőtak pension No DC voluntary Individual Banking,

arékossági saving UCITS (c)
számla (c) account

MT Occupational Trust Trust No Trust Voluntary occupational IORP (c)

Retirement Deed (b)
Scheme Contractual Contractual
(a) Contract
between
the
employer
and the
Retireme
nt
Scheme
Administr
ator

EN 21 EN
 Types of the private pension institutions Types of Mandator Source EU
pension y/ regulation
schemes voluntary • Statutory
Domestic Legal form Legal form Art. /
funded
name (domestic) (English) 3? • occupational
voluntary
Y/N • individual
opt-out

Personal Trust Trust No Trust Individual (d) No EU

Retirement Deed prudential
Scheme Contractual Contractual legislation
(a) Contract
between
member
and the
Retireme
nt
Scheme
Administr
ator

NL Pensioenfonds Stichting Foundation No Mandatory Occupational IORP

(´pension (a) for (b)
fund´) industry-
wide
schemes

Voluntary
opt-out for
company
schemes

Verzekeraar Naamloze Public No Voluntary Occupational Life

(´insurance vennootschap limited (b)/individual
company´ or company
´insurer´)

AT Pensionskasse Aktiengesellsc Joint-stock No DB and voluntary occupational IORP

haften company DC

Betriebliche Aktiengesellsc Joint-stock No DB and voluntary occupational Life

Kollektivversic haften, company, DC
herung Versicherungs mutual
verein auf insurance
Gegenseitigkei association
t and SE and SE

Lebensindivid Aktiengesellsc Joint-stock No DB and voluntary Individual Life

ual- und haften, company, DC
Gruppenrente Versicherungs mutual
nersicherung verein auf insurance
Gegenseitigkei association
t and SE and SE

Direkte No DB/DC voluntary Occupational Excluded

Leistungszusa from IORP
gen (Book- Directive
reserve based on
schemes) Art 2.2(e)

EN 22 EN
 Types of the private pension institutions Types of Mandator Source EU
pension y/ regulation
schemes voluntary • Statutory
Domestic Legal form Legal form Art. /
funded
name (domestic) (English) 3? • occupational
voluntary
Y/N • individual
opt-out

PL pracowniczy fundusz occupational No DC voluntary Occupational IORP (b)

fundusz emerytalny pension fund (a)
emerytalny (osoba (in Polish
prawna) legal
framework is
registered as
separate
legal entity)

zakład spółka joint-stock No DC voluntary Occupational Life

ubezpieczeń akcyjna company (a)
na życie

fundusz fundusz investment No DC voluntary Occupational UCITS

inwestycyjny inwestycyjny fund (in (a)
otwarty Polish legal
framework is
registered as
separate
legal entity

zarządzający Not specified No DC voluntary Occupational IORP (c)

zagraniczny – all form of (a)
IORPs
(foreign notified by
manager) relevant
authorities
from other
Member
States

Otwarty fundusz Open No DC mandatory Statutory Regulation

fundusz emerytalny pension fund funded 1408/71
emerytalny (osoba (in Polish
prawna) legal
framework is
registered as
separate
legal entity)

EN 23 EN
 Types of the private pension institutions Types of Mandator Source EU
pension y/ regulation
schemes voluntary • Statutory
Domestic Legal form Legal form Art. /
funded
name (domestic) (English) 3? • occupational
voluntary
Y/N • individual
opt-out

Indywidualne 1) Fundusz 1) No DC voluntary individual 1) UCITS

konta inwestycyjny, Investment
emerytalne fund -in 2) Life
2) Zakład Polish legal
ubezpieczeń framework is
3) Banking
na życie, registered as
separate
legal entity, 4) ISD
3) Bank,

2) joint-
4) instytucja
stock
prowadząca
company,

działalność
3) joint-
maklerską.
stock
company,

4) Limited
company or
joint-stock
company

PT Fundos de Fundos de Pension No DB / DC Voluntary occupational IORP

pensões pensões funds
fechados
(closed
pension
funds)

Adesões Fundos de Pension No DB / DC Voluntary occupational IORP

colectivas a pensões funds
fundos de
pensões
abertos
(collective
membership
of open
pension
funds)

Contratos de Contratos de Insurance No DB / DC Voluntary occupational Life

seguro de seguro policies
grupo (group
insurance
policies)

Planos de 1) Fundos de 1) Pension No DC Voluntary individual 1) No

poupança-refo pensões funds relevant EU
rma prudential
(saving-retire 2) Contratos 2) Insurance regulation
ment de seguro policies (a)
schemes)
3) Fundos de 3) Investme 2) Life
investimento nt funds
3) UCITS

EN 24 EN
 Types of the private pension institutions Types of Mandator Source EU
pension y/ regulation
schemes voluntary • Statutory
Domestic Legal form Legal form Art. /
funded
name (domestic) (English) 3? • occupational
voluntary
Y/N • individual
opt-out

Adesões Fundos de Pension No DC Voluntary individual No relevant

individuais a pensões funds EU
fundos de prudential
pensões regulation
abertos (b)
(individual
membership
of open
pension
funds)

Contratos de Contratos de Insurance No DC Voluntary individual Life

seguro seguro policies
individuais
(individual
insurance
policies)

Planos de No DB/DC voluntary occupational Excluded

pensões (c) from IORP
financiados no Directive
balanço da based on
empresa Art. 2.2(e)
(book-reserve
schemes)

RO Administrator Administrator Administrato No hybrid DC Mandatory Statutory Regulation

al unui fond ul unui fond r of a (a) funded 1408/71
de pensii de pensii privately (individual)
administrat administrat administrate
privat privat - d pension
Societate pe fund- joint
actiuni stock
company

Administrator Administrator Administrato Yes DC (b) Voluntary individual IORP (c)

de fonduri de ul de fonduri r of
pensii de pensii voluntary
facultative facultative - pension
Societate pe funds - joint
actiuni stock
company

SI Pokojninska Delniška Joint-stock No DC Voluntary Occupational IORP

družba družba company opt-out (a)

Zavarovalnica Delniška Joint-stock No DC Voluntary Occupational IORP

družba company opt-out (b)

EN 25 EN
 Types of the private pension institutions Types of Mandator Source EU
pension y/ regulation
schemes voluntary • Statutory
Domestic Legal form Legal form Art. /
funded
name (domestic) (English) 3? • occupational
voluntary
Y/N • individual
opt-out

Vzajemni Vzajemni Mutual No DC Voluntary Occupational IORP

pokojninski pokojninski pension opt-out, (c)
sklad sklad, fund, Mandatory
upravjavci: managed by for certain
banka, bank, occupation
zavarovalnica, insurance s
pokojninska company,
družba pension
insurance
company

Sklad Sklad Found No DC/DB Voluntary Individual No relevant

obrtnikov in prudential
podjetnikov EU
(SOP) legislation
applicable
to the
pension
product

SK dôchodková akciová joint stock DC Statutory Regulation

správcovská spoločnosť company (personal, funded 1408/71
No Voluntary
spoločnosť protected (individual) and 574/72
)

doplnková akciová joint stock DC Individual, in IORP

Voluntary,
dôchodková spoločnosť. company (hybrid, general (b)
No in general
spoločnosť unprotect
(a)
ed)

FI ETA- eläkesäätiö company No DB voluntary occupational IORP

lisäeläkesäätiö pension fund
(independen
t legal
entity)

ETA- eläkekassa industry- No DB voluntary occupational IORP

lisäeläkekassa wide pension
fund
(independen
t legal
entity)

SE Livförsäkrings Aktiebolag Proprietary No DC/DB Voluntary 1) 1) IORP

bolag life (a) Occupational (Art. 4)
insurance
company 2) individual 2) Life
(b)

Livförsäkrings Ömsesidigt Mutual life No DC/DB Voluntary 1) 1) IORP

bolag bolag insurance (a) Occupational (Art. 4)
company
2) individual 2) Life
(b)

Tjänstepensio Understödsför Occupational No DC/DB Voluntary Occupational IORP

nskassa ening pension fund (a) and
individual

EN 26 EN
 Types of the private pension institutions Types of Mandator Source EU
pension y/ regulation
schemes voluntary • Statutory
Domestic Legal form Legal form Art. /
funded
name (domestic) (English) 3? • occupational
voluntary
Y/N • individual
opt-out

Pensionsstiftel Stiftelse Pension No None, Voluntary Occupational IORP

se (c) foundation investme (a)
nts only

Särskild No DB Voluntary Occupational Excluded

redovisning av (a) from IORP
pensionsskuld Directive
(Book based on
reserves) (d) Art. 2.2(e)

UK Occupational Trust Trust (a) No DB Voluntary occupational IORP

DB scheme

Occupational Trust Trust (a) No DC Voluntary occupational IORP

DC scheme

Occupational Trust Trust (a) No DB/DC Voluntary occupational IORP

Hybrid (b)
scheme

Personal Contract Contract No DC Voluntary individual Life

pension
scheme

IS Lífeyrissjóður Sjóður Fund No DB/DC Mandatory Occupational No EU

and (a) and prudential
voluntary individual legislation

LI Pension Funds Stiftung Foundation Yes DB or DC Mandatory Occupational Regulation

(Pensionskass (a) 1408/71
e) collective and 574/72
foundatio
n or
captive
foundatio
n

Pensions Stiftung, Foundation, No DB or DC Voluntary Occupational IORP

funds (b)
(Pensionsfond Aktiengesellsc Limited biometric
s) haft, company, risk or
not
Europäische Societas
Aktiengesellsc europa, call for
haft, additional
Cooperative cover or
Genosenschaf society not
t
Societas
Europäische Cooperativa
Genossenscha Europaea
ft

EN 27 EN
 Types of the private pension institutions Types of Mandator Source EU
pension y/ regulation
schemes voluntary • Statutory
Domestic Legal form Legal form Art. /
funded
name (domestic) (English) 3? • occupational
voluntary
Y/N • individual
opt-out

Insurance Aktiengesellsc Limited No DC or DB Voluntary Occupational IORP

company haft, company, (Art.4)
(Versicherung
sunternehmen Genossenscha Cooperative
, direkte ft Society
Lebensversich
erung)

NO Foretakspensj 1) 1) Pension No DB It is occupational 1) IORP

ons-ordninger Pensjonskasse funds mandatory
r to have a 2) Life
3) Life DC or a
2) insurance DB
Livsforsikrings companies scheme
- selskaper

Innskuddspen 1) 1)Pension No DC It is Occupational 1) IORP

sjons- Pensjonskasse fund, mandatory
ordninger r to have a 2) IORP
2) Defined DC or a
2) contribution DB
3) Life
Innskuddspen pension scheme
sjons-foretak undertakings
4) Banking
,
3)
5) UCITS
Livsforsikrings 3)Life
-selskaper insurance
companies
4) Banker
4)Banks
5)
Forvaltningsse 5)
lskap for Companies
verdipapirfond which
manage
securities
funds

Individual 1) 1) Life No DC Voluntary Individual 1) Life

pension Livsforsikrings insurance
schemes selskaper companies 2) Banking

2) Banker 2)Banks 3) UCITS

3) 3) 4) IORP
Forvaltningsse Companies
lskap for which
verdipapirfond manage
securities
4) funds
Pensjonskasse
r 4) Pension
fund (e)

EN 28 EN
 Types of the private pension institutions Types of Mandator Source EU
pension y/ regulation
schemes voluntary • Statutory
Domestic Legal form Legal form Art. /
funded
name (domestic) (English) 3? • occupational
voluntary
Y/N • individual
opt-out

Statens Pension fund Statens DB Mandatory Occupational Excluded

Pensjonskasse Pensjonskas from IORP
se is a directive
pension fund based on
administerin Art. 2.2. (a)
g pension and/or (c)
schemes for
state
employees
and certain
other groups
of
employees

Book reserves Pension Usually voluntary Occupational Excluded

(a) schemes DB (b) from IORP
based on directive
contract based on
where the Art. 2.2. (e)
benefits are
paid by the
employer/un
dertaking

Pensjonsfond pension fund DB Mandatory Occupational Excluded

(c) if a from IORP
pension directive
fund as based on
mentioned Art. 2.2 (c)
is and/or (d)
establishe
d

pension funds pension DB Mandatory Occupational Excluded

schemes from IORP
fixed by law directive
for certain based on
occupational Art. 2.2(c)
groups (d)

pension fund Pension fund DB Mandatory Occupational Excluded

sponsored by for medical from IORP
State parctitioners directive
based on
Art. 2.2(c)

pension funds Pension DB Voluntary Occupational Excluded

sponsored funds from IORP
partly by the administratin directive
State g early based on
retirement Art. 2.2(c)
schemes

Note: The column "Art. 3? Y/N" indicates whether or not Article 3 of the IORP Directive applies. This article specifies that
institutions for occupational retirement provision which also operate compulsory employment-related pension schemes which
are considered to be social-security schemes covered by Regulations (EEC) No 1408/71 and (EEC) No 574/72 shall be
covered by the IORP Directive in respect of their non-compulsory occupational retirement provision business.

Country-specific notes to the table:

EN 29 EN
 Belgium (BE)

a) The legal forms possible until 01/01/2012 are: ASBL (Association Sans But Lucratif)/VZW (Vereniging Zonder
Winstoogmerk), or AAM (Association d’Assurances Mutuelles)/OVV (Onderlinge Verenigingsvereniging). The new legal
form since 01/01/2007 is the OFP (Organisme de Financement de Pensions/Organisme voor de Financiering van
Pensioenen).

b) Voluntary opt-out in some industry-wide schemes under certain conditions.

c) Scope of schemes: employer, industry-sector or self-employed (some are organised by profession but not necessarily); an
IORP may manage several types of schemes with different scopes.

d) Organisme de placement collectif en valeurs mobilières (OPCVM) / instelling voor collectieve belegging (ICBE):
organismes de placement collectif publics à nombre variable de parts (SICAV) / openbare instellingen voor collectieve
belegging met veranderlijk aantal rechten van deelneming (BEVEK).

e) The scope is limited to providing pension benefits to company managers.

Bulgaria (BG)

(a) Each insured person in a voluntary pension fund has an individual account in which his/her personal contributions are
accumulated. In the same personal account contributions can be made by employers or third persons with prior consent from
the insured person.

(b) The occupational pension schemes are managed within pension funds which are legal persons. The pension funds are
established and managed by pension insurance companies, which are joint stock companies. The pension insurance
companies manage separate pension funds for voluntary occupational schemes.

(c) The individual pension schemes are managed within pension funds which are legal persons. The pension funds are
established and managed by pension insurance companies, which are joint stock companies. The pension insurance
companies manage separate pension funds for voluntary individual schemes.

(d) The mandatory pension schemes are managed within pension funds which are legal persons. The pension funds are
established and managed by pension insurance companies, which are joint stock companies. The pension insurance
companies manage separate pension funds for mandatory schemes (universal and professional pension funds).

Czech Republic (CZ)

a) This product is based on an individual contract that can be concluded regardless of the client’s occupational status.
However, there can be some occupational element in the sense that an employer can act as a third person contributing to the
client’s account. In 2008, this was the case for approximately 25% of clients.

Denmark (DK)

a) For life insurance companies participation is mandatory and the scheme belongs to the occupational pillar when the
scheme is part of a pension plan in a company.

Germany (DE)

a) In general voluntary. In some areas, there are collective agreements providing for obligatory occupational retirement
provisions or financial incentives for employees for deferred compensation.

b) The insolvency coverage by the PSVaG (Pensions-Sicherungs-Verein Versicherungsverein auf Gegenseitigkeit) applies to
this type of occupational retirement provisions (insolvency of the employer).

c) In general voluntary. In some areas, there are collective agreements providing for obligatory occupational retirement
provisions.

d) Under certain circumstances, the insolvency coverage by the PSVaG (Pensions-Sicherungs-Verein Versicherungsverein
auf Gegenseitigkeit) applies to this type of occupational retirement provisions (insolvency of the employer).

Ireland (IE)

EN 30 EN
 a) The pension scheme is the institution for occupational retirement provision. Legal separation of pension fund assets from
all other assets is achieved via the trust mechanism under which all pension schemes are set up.

Greece (EL)

a) Occupational Insurance Funds are independent legal entities. They are established on a voluntary basis in each company or
sector(s) of employment on the initiative either of employees or employers or through an agreement between employees and
employers as well as on the initiative of self-employed or independent professionals or farmers or their associations.
Depending on the type of arrangement, Occupational Insurance Funds can provide benefits in kind or in cash, in the form of
annuity or as a lump sum. Occupational Insurance Funds that provide retirement benefits operate on a funded basis (DC
pension schemes).

b) In addition, also Directive 98/49/EC (safeguarding the supplementary pension rights) and Directive 2006/54/EC (equal
opportunities) apply.

c) Group Insurance Contracts concluded between the employer and the insurance company in the sectors VII "management
of group pension funds" or IX "works similar to social security".

d) In addition, Directive 98/49/EC (safeguarding the supplementary pension rights) applies.

Spain (ES)

a) Employers cannot pay contributions on behalf of members into this scheme.

b) The national legislation applicable is the Pension Plan and Fund Act (Texto Refundido de la Ley 8/1987, de regulación de
Planes y Fondos de Pensiones) of 29 November 2002.

France (FR)

a) All these institutions are able to sell: (i) occupational pension schemes, in particular “Article 83” schemes (defined-
contribution), “article 39” schemes (defined-benefit) or “contrats Madelin” schemes (defined-contribution); or (ii) individual
life insurance (individual pension savings).

b) For occupational retirement provision, the institution can decide about the regulatory framework: life directive or IORP
directive, with application of its article 4. The institution has to ask for a specific agreement if it wants to use the IORP
directive. For individual retirement provision, the life directive applies.

Italy (IT)

a) Independent legal entity set up as a result of an agreement between employers and trade unions at industry level (also
company, group, or regional funds are possible and have in fact been instituted).

b) Pension funds instituted by financial intermediaries (banks, insurance companies, etc) as segregated assets. They can host
both occupational and personal schemes.

c) Pension funds instituted before 1993 as an independent legal entity.

d) Non-autonomous pension funds instituted before 1993 as book reserves within the balance sheet of an employer. When the
company that sets up the pension fund is a bank or an insurance, which is the typical case, the banking directive or insurance
directive applies.

e) Independent private entities operating social security schemes for several categories of self-employed, professional
workers (such as lawyer, etc.).

f) Personal retirement plans based on individual life insurance companies.

Cyprus (CY)

a) There are company provident funds and industry-wide provident funds, which provide lump sum benefits.

b) There are employees´ pension funds (private companies, semi public organizations and local authorities) and pension
funds for self employed (advocates and doctors).

EN 31 EN
 c) These schemes have no legal personality. They are pay as you go pension schemes that provide a lump sum benefit and a
monthly benefit for life.

d) These schemes have no legal personality. They are book reserve retirement bonus schemes that provide a lump sum
benefit.

Latvia (LV)

a) There are closed pension funds which provide only occupational pensions and open pension funds which are allowed to
operate both occupational and individual pensions.

b) In addition, Directive 98/49/EC (safeguarding the supplementary pension rights) applies.

c) This scheme is part of the state pension and contributions paid to the scheme are part of the social tax. The scheme is
operated by the State social security agency. The assets of the scheme are managed by private asset managers (they are not
IORPs). State funded pension scheme could be treated as part of the funded tier of statutory pensions.

d) Voluntary for those socially insured persons who were at age between 30 and 45 at 01.07.2001.

Lithuania (LT)

a) DB schemes shall be implemented only for individuals who are not subject to the Lithuanian social security and labour
legislation, i.e. in case of cross-border activities.

b) No relevant prudential EU legislation applicable to the pension product. However, Directive 85/611/EEC (UCITS) is
applied for the providers.

Luxembourg (LU)

a) Authorised and supervised by CSSF.

b) Authorised and supervised by Commissariat aux Assurances.

c) No relevant prudential EU legislation applicable to the pension product. To the provider: Directive 2002/83/EC for
underlying insurance contracts, Banking Directive 2006/48/EC and UCITS directive (2001/108/EC).

Hungary (HU)

a) Since 1.1.2010, there is a performance guarantee equal to inflation.

b) Members are obliged to pay contribution. However the employer has the possibility to pay contribution on behalf of the
member.

c) This is a special saving account with tax incentives. There is no relevant prudential EU legislation applicable to the
pension product. To the provider: Banking Directive 2006/48/EC and UCITS directive (2001/108/EC).

Malta (MT)

a) A Retirement Scheme of a contractual nature consists of a separate pool of assets with no legal personality with the
purpose of providing retirement benefits.

b) Currently the pension system in Malta is still based on state pension provisioning.

c) In addition, Directive 98/49/EC (safeguarding the supplementary pension rights) applies.

d) An employer cannot contribute to Personal Retirement Schemes that may be established in terms of the current legislation.
These Personal Retirement Schemes would be funded solely by contributions from the individual.

Netherlands (NL)

a) Various legal forms are permitted, but pension funds almost exclusively prefer a Foundation.

b) As for occupational pension schemes, the social and labour law and the information requirements are the same for insurers
and pension funds.

EN 32 EN
 Poland (PL)

a) There are four legal forms of occupational pension plans in Poland which could be freely chosen by an employer as the
plan sponsor.

b) “Pracowniczy fundusz emerytalny” is a Polish financial institution (fund) which operates in Poland and under the Polish
law and its only two tasks are to accumulate and to administer contributions (premiums) from sponsoring undertakings for
occupational pension purposes. This institution fulfils criteria for IORPs under Article 6a of the IORP Directive, so it can
also operate cross-border in other Member States.

c) “Zarzadzajacy zagraniczny” is a foreign IORP which operates cross-border in Poland, in the meaning of the Polish law.

Portugal (PT)

a) These institutions are out of the scope of the IORP Directive because they are institutions for personal retirement
provision. They are covered either by the Life or UCITS Directive or by the national pension fund legislation. The national
pension fund legislation (one single Decree-Law), which always covered both occupational and individual schemes, was
updated to reflect the requirements of the IORP Directive.

b) These institutions are out of the scope of the IORP Directive because they are institutions for personal retirement
provision. They are covered by national pension fund legislation. This legislation (one single Decree-Law), which always
covered both occupational and individual schemes, was updated to reflect the requirements of the IORP Directive.

c) Usually covers retirement benefits that are not tax qualified, e.g. early retirement programmes.

Romania (RO)

a) Personal, mandatory, minimum benefit established by Law, funded pension scheme with automatic enrolment.

b) Voluntary, unprotected, funded pension scheme.

c) In the national implementation.

Slovenia (SI)

a) May offer individual pension policies.

b) May offer individual pension policies and life insurance.

c) The mutual pension fund is not a legal entity. It may offer individual policies.

Slovakia (SK)

a) Mandatory for certain categories of employees (e.g. miners).

b) Occupational for certain categories of employees (e.g. miners).

Sweden (SE)

a) Voluntary, though most occupational pension is mandatory through collective agreements.

b) May offer life insurance (separate) as well.

c) Linked to companies who have technical provisions as DB book reserves (outside of IORP directive scope)

d) Companies recently try to set up book reserves even for DC schemes. The Swedish authorities have therefore initiated a
discussion with the companies to begin in the near future. By law it is required that the book reserves must be secured.
Normally this is done through credit insurance.

United Kingdom (UK)

a) The pension scheme is classed as the institution. As such there is no legal separation. Legal separation of pension fund
assets from all other assets is achieved via the trust mechanism under which all pension schemes are set up.

EN 33 EN
 b) Legally classified in UK as DB but has some guarantees and some money purchase elements.

Iceland (IS)

a) Pensions fund are in many cases based on profession, but some professions can choose in which pension fund they pay.

Liechtenstein (LI)

a) Beside the statutory pillar (old age, disability and survivors’ insurance; AHV), Liechtenstein has also a mandatory
occupational pillar to supplement the statutory pillar. For each employee for whom an employer has the obligation to pay
contributions to the social insurance (statutory pillar), the employer has also the obligation to pay to an occupational DB or
DC scheme (beside some exceptions; minimum contributions are stipulated by law). The relevant law is the “Gesetz vom 20.
Oktober 1987 über die betriebliche Personalvorsorge” (BPVG).

b) For an employee having the obligation to pay contributions to the social insurance (statutory pillar), only voluntary
contributions can be made into a pension plan according to the “Gesetz vom 24. November 2006 betreffend die Aufsicht über
Einrichtungen der betrieblichen Altersversorgung” (Pensionsfondsgesetz; PFG), with which directive 2003/41/EC was
implemented. The mandatory part has to be paid into a pension plan according to the BPVG.

c) Insurance company (Versicherungsunternehmen, direkte Lebensversicherung).

Norway (NO)

a) The use of this kind of schemes is unknown and probable very limited.

b) Usually DB schemes based on contract and usually limited to providing pension benefits to company managers.

c) All pensjonsfond are established according to tax regulation before 1968. Pensjonsfond are without guaranteed benefits.
The benefits are derived according to certain rules laid down in tax law on the basis of the size of the fund. Benefits from
these pension funds are paid primarily in order to compensate employers/pensioners born before 1917 for reduced benefits
from State pension scheme.

d) The pension schemes are fixed by legislation.

e) It is legally possible for pension funds to offer individual pension schemes to members.

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